Chapter 15 Evaluating Marketing Communications

MARC5_C15.qxd 12/18/08 1:01 PM Page 442 Chapter 15 Evaluating marketing communications As part of the marketing communication process it is necessary to evaluate the overall impact and effect that a campaign has on a target audience. It needs to be reviewed in order that management can learn and better understand the impact of its communications and its audiences. Aims and learning objectives The aims of this chapter are to review the ways in which marketing communications activities can be evaluated. The learning objectives of this chapter are to: 1. discuss the role of evaluation as part of marketing communications; 2. explore the value and methods of pre-testing and post-testing advertisements; 3. explain the main ideas behind different physiological measures of evaluation; 4. provide an insight into the way in which each of the tools of the communication mix can be evaluated; 5. consider other ways in which the effectiveness of marketing communications can be evaluated; 6. measure the fulfilment of brand promises; 7. consider some of the issues associated with evaluating the effectiveness of digital and online communications. For an applied interpretation see Jill Brown’s MiniCase entitled Measuring communication effectiveness at the Salvation Army at the end of this chapter. MARC5_C15.qxd 12/18/08 1:01 PM Page 443 CHAPTER 15 EVALUATING MARKETING COMMUNICATIONS 443 Introduction All organisations review and evaluate the performance of their various activities. Many under- take formal mechanisms, while others review in an informal, ad hoc manner, but the process of evaluation or reflection is a well-established management process. The objective is to mon- itor the often diverse activities of the organisation so that management can exercise control. It is through the process of review and evaluation that an organisation has the opportunity to learn and develop. In turn, this enables management to refine its competitive position and to provide for higher levels of customer satisfaction. The use of marketing communications is a management activity, one that requires the use of rigorous research and testing procedures in addition to continual evaluation. This is necessary because planned communications involve a wide variety of stakeholders and have the potential to consume a vast amount of resources. The evaluation of planned marketing communications consists of two distinct elements. The first element is concerned with the development and testing of individual messages. For example, a particular sales promotion (such as a sample pack) has individual characteristics that may or may not meet the objectives of a sales promotion event. An advertising message has to achieve, among other things, a balance of emotion and information in order that the communi- Testing is required to ensure that the cation objectives and message strategy be achieved. To accomplish intended messages are encoded this, testing is required to ensure that the intended messages are correctly and are capable of being encoded correctly and are capable of being decoded accurately by decoded accurately by the target the target audience and the intended meaning is ascribed to the audience. message. The second element concerns the overall impact and effect that a campaign has on a target audience once a communications plan has been released. This post-test factor is critical, as it will either confirm or reject management’s judgement about the viability of its communications strategy. The way in which the individual components of the communications mix work together needs to be understood so that strengths can be capitalised on and developed and weaknesses negated. Prediction and evaluation require information about options and alternatives. For example, did sales presentation approach A prove to be more effective than B and, if so, what would happen if A was used nationally? Predictably, the use of quantitative techniques is more preva- lent with this set of reasons. This concluding chapter of Part 3 examines the testing and evaluation methods that are appropriate to all the tools of the communications mix and introduces ideas relevant to the measurement of online communications. The role of evaluation in planned communications The evaluation process is a key part of marketing communications. The findings and results of the evaluative process feed back into the next campaign and provide indicators and bench- marks for further management decisions. The primary role of evaluating the performance of a communications strategy is to ensure that the communications objectives have been met and that the strategy has been effective. The secondary role is to ensure that the strategy has been executed efficiently, that the full potential of the individual promotional tools has been extracted and that resources have been used economically. Research activity is undertaken for two main reasons. The first is guidance and development and the second is prediction and evaluation (Staverley, 1993). Guidance takes the form of MARC5_C15.qxd 12/18/08 1:01 PM Page 444 444 PART 3 MANAGING MARKETING COMMUNICATIONS Table 15.1 Four dimensions of IMC Dimension of IMC Explanation Unified communications for consistent Activities designed to create a clear, single position, in the target market, messages and images delivering a consistent message through multiple channels. Differentiated communications to The need to create different marketing communications campaigns multiple customer groups (and positions) targeted at different groups (in the target market) who are at different stages of the buying process. Sequential communication models based on the hierarchy of effects or attitude construct apply. Database-centred communications This dimension emphasises the need to generate behavioural responses through direct marketing activities created through information collected and stored in databases. Relationship fostering communications The importance of retaining customers and developing long-term for existing customers relationships is a critical element of marketing communications. Source: Lee and Park (2007). Used with permission from WARC. shaping future strategies as a result of past experiences. Development is important in the con- text of determining whether the communications worked as they were intended to. The prevalence and acceptance of the integrated marketing One of the predominant issues communications concept (Chapter 9) suggests that its measure- surrounding the development of ment should be a central aspect when evaluating marketing com- IMC is the difficulty and lack of munications activities. One of the predominant issues surrounding empirical evidence concerning the the development of IMC is the difficulty and lack of empirical measurement of this concept. evidence concerning the measurement of this concept. In an attempt to resolve this Lee and Park (2007) provide one of the first multidimensional-scaled measures of IMC. Their model is based on four key dimensions drawn from the literature. These are set out in Table 15.1. Each of these dimensions is regarded as separate yet integral elements of IMC. Lee and Park developed an 18-item scale, derived from the literature, to measure these dimensions. The use of this approach may advance our understanding of IMC and provide a substantial basis on which IMC activities can be measured. It is interesting to note that Lee and Park see IMC as a customer-only communication activity and choose to exclude other critical stakeholders from their measurement model. Advertising An IPA report in 1998 stated that 23 per cent of finance directors said that There have been four main if business costs were under pressure they would cut marketing and advert- stages to the measurement ising before anything else (Farrow, 1999). Among the reasons offered for of advertising effectiveness. this view was the feeling that advertising was extremely difficult to measure and thus problematic in terms of its overall contribution to the organisation. If in doubt, cut it. On a more optimistic note Fendwick (1996) suggests that there have been four main stages to the measurement of advertising effectiveness. 1. Direct response – coupon response. 2. Executions – measurement of consumer psychological responses to the way individual ads are executed. The recognition and recall techniques were developed and refined to reflect this approach. MARC5_C15.qxd 12/18/08 1:01 PM Page 445 CHAPTER 15 EVALUATING MARKETING COMMUNICATIONS 445 3. Campaign evaluation (current age) – the evaluation of campaigns working over a period of time. The use of econometrics and modelling techniques to examine the influence of key variables typifies this approach. 4. Research nirvana (future age) – through the use of computers and vast data sets it will become possible to evaluate specific individual and panel data regarding various emotional and rational impacts of a variety of marketing communication messages. The effect will be to enable managers to adjust their communications messages and media quickly, efficiently and much more effectively. The techniques used to evaluate advertising are by far the most documented and, in view of the relative sizes of the communication tools, it is not surprising that slightly more time is devoted to this tool. This is not to disregard or disrespect the contribution each of the communication tools can make to an integrated campaign. Indeed, it is the collective measure of success against the goals set at the outset that is the overriding imperative

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